These trading managers see registration revoked by CFTC

Regulator says firm issued inflated statements

The U.S. Commodity Futures Trading Commission (CFTC) revoked the registrations of Chicago Trading Managers LLC (CT Managers). CT Managers had been registered with the CFTC as a Commodity Pool Operator and Commodity Trading Advisor.

On December 27, 2013, CFTC Judgment Officer Philip V. McGuire issued a Decision against CT Managers, finding that it was statutorily disqualified from CFTC registration based on a default judgment and permanent injunction Order entered by the U.S. District Court for the Southern District of New York on May 15, 2013 (see CFTC News Release 6589-13, May 16, 2013). That injunction prohibits CT Managers from, among other things, committing further fraud; entering into any regulated commodity contract transactions for any account in which it has a direct or indirect interest; controlling or directing the trading of any regulated commodity contract account; and soliciting or receiving or accepting any funds for the purpose of purchasing or selling any regulated commodity contract.

Additionally, the default judgment found that on at least 10 occasions CT Managers issued, or caused to be issued, statements to pool participants that fraudulently inflated the net asset value for pools and found that CT Managers, by engaging in that conduct, committed fraud in violation of the Commodity Exchange Act.

Additionally, the default judgment ordered CT Managers to pay a civil monetary penalty of $1.4 million jointly and severally with another Defendant.

The CFTC thanks the National Futures Association for its assistance.

CFTC Division of Enforcement staff members responsible for this case are Lenel Hickson and Manal M. Sultan.